# ASC 853-10: Service Concession Arrangements — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/853/10/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:04:03.256Z to 2026-09-10T02:04:21.499Z Record version: sha256:98d829ab11a320b44781bb1d540de4e78de0e7c0c4706eabff4b388979725624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10: Service Concession Arrangements — Overall ### Machine-generated study aids ```json { "summary": "ASC 853-10 governs how an operating entity accounts for a service concession arrangement — a contract in which a public-sector grantor engages the operating entity to operate (and possibly construct, upgrade, or maintain) the grantor's infrastructure, such as airports, roads, bridges, prisons, or hospitals. The arrangement is in scope only if the grantor controls or can modify/approve the services, the recipients, and the price, and controls any residual interest in the infrastructure at the end of the term (853-10-15-3). In scope, the grantor is always deemed the customer of the operation services under Topic 606, the infrastructure is not recognized as the operating entity's PP&E, and the arrangement is not a lease under Topic 842 (853-10-25-1 through 25-2).", "key_points": [ "A service concession arrangement is an arrangement in which an operating entity operates, and may also maintain, construct, or significantly upgrade, a grantor's infrastructure used to provide a public service for a specified period (853-10-05-1).", "Consideration may come from grantor payments (as services are performed or over an extended period), from the right to charge third-party users, or from an unconditional grantor guarantee of a minimum payment if user fees fall short of a threshold (853-10-05-2).", "The Topic applies only where the grantor is a public-sector entity (a governmental body or an entity delegated responsibility to provide public service) and both conditions in 853-10-15-3 exist: grantor control over the services, recipients, and price; and grantor control of any residual interest in the infrastructure at the end of the term.", "An arrangement meeting the scope criteria of Topic 980 on regulated operations applies Topic 980 rather than this Topic (853-10-15-4).", "Revenue is accounted for under Topic 606, and the grantor is considered the customer of the operation services in all cases within this Topic's scope (853-10-25-1).", "The infrastructure subject to an in-scope service concession arrangement is not recognized as property, plant, and equipment of the operating entity, and the arrangement is not within the scope of Topic 842 on leases (853-10-25-2).", "Other aspects of the arrangement (e.g., construction or upgrade services, receivables, guarantees) are accounted for by reference to other Topics (853-10-25-1)." ], "categories": [ "Recognition", "Revenue", "Leases", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The tested point is scope plus two bright-line outcomes: the grantor — not the driving public paying tolls — is the Topic 606 customer, and the operating entity never books the infrastructure as its own PP&E or as a lease. A common misunderstanding is treating third-party user fees as revenue from the public, or analogizing the arrangement to a lease of the infrastructure.", "related_topics": [ "606", "842", "980", "360", "460", "340-40" ], "key_concepts": [ "service concession arrangement", "public-sector grantor", "operating entity", "infrastructure", "control over services and price", "residual interest", "grantor as customer", "operation services" ] } ``` Source downloaded (UTC): 2026-09-10T02:04:03.256Z to 2026-09-10T02:04:03.256Z Record version: sha256:832e533363621e570d4d9e9c102ecc0f666c4944844a218cd4e51629ee37d235 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/853/10/#00-status) SEC content: no ##### [853-10-00-1](https://asc.understandingaccounting.org/asc/853/10/#853-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:03.256Z to 2026-09-10T02:04:03.256Z Record version: sha256:7c7376a01a43e745572832cdc098d9b1d54bd2d9af1bc834fdd650e571c383a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0501/23/2014
Public Business EntityAddedAccounting Standards Update No. 2017-1005/16/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0501/23/2014
853-10-05-1AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-05-2AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-15-1 through 15-4
AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-25-1AmendedAccounting Standards Update No. 2017-1005/16/2017
853-10-25-1AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-25-2AmendedAccounting Standards Update No. 2016-0202/25/2016
853-10-25-2AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-65-1AddedAccounting Standards Update No. 2014-0501/23/2014
853-10-65-2AddedAccounting Standards Update No. 2017-1005/16/2017
Source downloaded (UTC): 2026-09-10T02:04:06.059Z to 2026-09-10T02:04:06.059Z Record version: sha256:1c5921a02c5c50913e0a7dedad3593809eb0b5df4d8093dbd648f8877e6b9830 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/853/10/#05-overview-and-background) SEC content: no ##### [853-10-05-1](https://asc.understandingaccounting.org/asc/853/10/#853-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:06.059Z to 2026-09-10T02:04:06.059Z Record version: sha256:f694946c372c853c43d1cf7284527c1cbad50107b169e3e199dfe2659c7e4803 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A service concession arrangement is an arrangement between a grantor and an operating entity for which the terms provide that the operating entity will operate the grantor's infrastructure (for example, airports, roads, bridges, tunnels, prisons, and hospitals) for a specified period of time. The operating entity may also maintain the infrastructure. The infrastructure already may exist or may be constructed by the operating entity during the period of the service concession arrangement. If the infrastructure already exists, the operating entity may be required to provide significant upgrades as part of the arrangement. Service concession arrangements can take many different forms. ##### [853-10-05-2](https://asc.understandingaccounting.org/asc/853/10/#853-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:06.059Z to 2026-09-10T02:04:06.059Z Record version: sha256:9b2d138f4b7157d116d19ff1cf012c0586c89e132fe7d961f2977ab37e53d7c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a typical service concession arrangement, an operating entity operates and maintains for a period of time the infrastructure of the grantor that will be used to provide a public service. In exchange, the operating entity may receive payments from the grantor to perform those services. Those payments may be paid as the services are performed or over an extended period of time. Additionally, the operating entity may be given a right to charge the public (the third-party users) to use the infrastructure. The arrangement also may contain an unconditional guarantee from the grantor under which the grantor provides a guaranteed minimum payment if the fees collected from the third-party users do not reach a specified minimum threshold. This Topic provides guidance for reporting entities when they enter into a service concession arrangement with a public sector grantor who controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price (which could be set within a specified range). The grantor also controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement. Source downloaded (UTC): 2026-09-10T02:04:10.045Z to 2026-09-10T02:04:10.045Z Record version: sha256:4928ebbb2ae3183ed18a263d88b94245fc852cadac26f80e8a6c92a584061faf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/853/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [853-10-15-1](https://asc.understandingaccounting.org/asc/853/10/#853-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:10.045Z to 2026-09-10T02:04:10.045Z Record version: sha256:ce7e4f22014af0331a67635e8cfac2e8bb540d19a8527c64a588362211b2c142 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the scope for the Service Concession Arrangements Topic. #### Entities ##### [853-10-15-2](https://asc.understandingaccounting.org/asc/853/10/#853-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:10.045Z to 2026-09-10T02:04:10.045Z Record version: sha256:a1e17e7e3672f83aab1cac25514e65fb18d05b19a459ccba36203908a165fe1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the accounting by operating entities of a service concession arrangement under which a public-sector entity grantor enters into a contract with an operating entity to operate the grantor's infrastructure. The operating entity also may provide the construction, upgrading, or maintenance services of the grantor's infrastructure. ##### [853-10-15-3](https://asc.understandingaccounting.org/asc/853/10/#853-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:10.045Z to 2026-09-10T02:04:10.045Z Record version: sha256:7c279c456f279d839b34742da3ca3374d663078710eb594c0cf47b830f6c60e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public-sector entity includes a governmental body or an entity to which the responsibility to provide public service has been delegated. In a service concession arrangement, both of the following conditions exist: 1. a The grantor controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price. 2. b The grantor controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement. ##### [853-10-15-4](https://asc.understandingaccounting.org/asc/853/10/#853-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:10.045Z to 2026-09-10T02:04:10.045Z Record version: sha256:209dec3721f878d90539847d1f57165f2b94d2e88ad001c4b097d73cfbbed65a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A service concession arrangement that meets the scope criteria in Topic 980 on regulated operations shall apply the guidance in that Topic and not follow the guidance in this Topic. Source downloaded (UTC): 2026-09-10T02:04:15.864Z to 2026-09-10T02:04:15.864Z Record version: sha256:420edc08eb3286d0e99df1ef667a33da5739f71af16cb1daf742dfd1b9c3aa9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/853/10/#25-recognition) SEC content: no ##### [853-10-25-1](https://asc.understandingaccounting.org/asc/853/10/#853-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:15.864Z to 2026-09-10T02:04:15.864Z Record version: sha256:09dea0fabf20b091b0bd767fb166a27edfced5c25a5235fac19a7b0f6bea7cc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An operating entity shall account for revenue from service concession arrangements in accordance with Topic 606 on revenue from contracts with customers. In applying Topic 606, an operating entity shall consider the grantor to be the customer of its operation services in all cases for service concession arrangements within the scope of this Topic. An operating entity shall refer to other Topics to account for the various other aspects of service concession arrangements. #### The Operating Entity's Rights over the Infrastructure ##### [853-10-25-2](https://asc.understandingaccounting.org/asc/853/10/#853-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:15.864Z to 2026-09-10T02:04:15.864Z Record version: sha256:1cd3cfe9621b098a22b358654ee4e5b150b77e5fd7a1216f8026ebfe78b94d96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The infrastructure that is the subject of a service concession arrangement within the scope of this Topic shall not be recognized as property, plant, and equipment of the operating entity. Service concession arrangements within the scope of this Topic are not within the scope of Topic 842 on leases. Source downloaded (UTC): 2026-09-10T02:04:19.564Z to 2026-09-10T02:04:19.564Z Record version: sha256:6139d25e80f8d2a8fe19dd99fce4f749496a4b2a3a5743f7d8bd6dbf8e5d9170 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 853-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/853/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [853-10-65-1](https://asc.understandingaccounting.org/asc/853/10/#853-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:19.564Z to 2026-09-10T02:04:19.564Z Record version: sha256:982b2cf84cd05c60264b0e8b3c346cfcf49d9118b7c8fe70525067a2d15fb012 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/23/2016 after the end of the transition period stated in Accounting Standards Update No. 2014-05, _Service Concession Arrangements (Topic 853)_. ##### [853-10-65-2](https://asc.understandingaccounting.org/asc/853/10/#853-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:19.564Z to 2026-09-10T02:04:19.564Z Record version: sha256:0f2e849980b91b4a547ea681f66a669dec4fceab47e51866dfecae8743a3e08a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/20/2020 after the end of the transition period stated in Accounting Standards Update No. 2017-10, _Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services_.